CNQ Canadian Natural Resources Ltd

Chinese oil and gas company, China Petroleum and Chemical Corporation (SNP) or Sinopec has made a key natural gas discovery in the Sichuan Basin – the largest monomer marine uncompartmentalized carbonate gas find in China to date.

The Moxi block of the Anyue field (situated in the paleo uplift of central Sichuan) is said to hold proven reserves of about 440.385 billion cubic meters (bcm), of which 308.2 bcm of technically recoverable resource is available.  

Test production resulted in average daily production of 1.1 million cubic meters per well. The producing wells have an average daily output of 600,000 cubic meters.

Sinopec has completed two exploration wells since 2011. The Gaoshi-1 and the Moxi-8 wells, producing from the Simian system and Cambrian system respectively, have an output of about 1 million cubic meters per day. Sinopec took only under two years to find and start producing from the Longwangmiao gas reservoir, in the Cambrian system.

The company has made progress on the first phase of a production facility that would yield about 4 bcm. Work on the 6 bcm second phase of the project has also started. The company said that over 600 million cubic meters have been obtained from the productions trials at the Moxi block.

Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company is the second largest crude oil and natural gas producer, and the largest refiner and marketer of refined petroleum products in China. The company is also the largest producer and distributor of petrochemicals in the nation.

Sinopec currently holds a Zacks Rank #4 (Sell), implying that it is expected to underperform the broader U.S. equity market over the next one to three months.

However, one can consider better-ranked energy players like Canadian Natural Resources Limited (CNQ), Cabot Oil & Gas Corporation (COG) and Helmerich & Payne, Inc. (HP). All these stocks currently sport a Zacks Rank #1 (Strong Buy).  
 

 
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